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ARTICLE · 13 APRIL 2023

Budget 2023 Proposes Significant Amendments To Canada's General Anti-Avoidance Rule

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The 2023 Canadian Federal Budget, released March 28, 2023 (Budget 2023), proposes significant amendments to expand the application of Canada's general anti-avoidance rule (GAAR)

CanadaTax
Jared Mackey
Jared Mackey
Wade Ritchie
Wade Ritchie
Sophie Virji
Sophie Virji
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The 2023 Canadian Federal Budget, released March 28, 2023 (Budget 2023), proposes significant amendments to expand the application of Canada's general anti-avoidance rule (GAAR). These proposals come after the federal government's August 11, 2022 consultation paper, titled Modernizing and Strengthening the General Anti-Avoidance Rule (the Consultation Paper), which discussed various issues the government identified with the existing GAAR and described a variety of approaches it was considering to address these issues. Budget 2023 proposes the following amendments to the GAAR:

  • Introducing a preamble containing interpretive rules and statements of purpose with language more commonly seen in legislative explanatory notes.

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